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44.8% rise in profits for SIB

KOTTAYAM: South Indian Bank (SIB) has posted a net profit of Rs.51.68 crore for the quarter ending September 30, 2008. This denotes a record 44.8 per cent rise when compared to the net profit of Rs.35.69 crore registered during the same period last year.

Addressing a press conference after the director board meeting here on Tuesday, V.A. Joseph, managing director and chief executive officer, said the bank earned a total income of Rs.440.08 crore during the quarter as against Rs.345.82 crore during Q2 the previous year, registering a growth of 27.25 per cent. Total business increased by Rs.3,785 crore to Rs.26,836; a growth of 16.28 per cent.

Deposits went up by Rs.1,783 crore to Rs.15,715 crore; denoting a growth of 12.80 per cent over last Q2. Advances registered a growth of 21.58 per cent; from Rs.9,147 crore to Rs.11,121 crore. “Net non-performing assets (NPA) as on September 30 was lower at 0.40 per cent as against 0.71 percent for Q2, 2007, while gross NPA stood at 1.86 per cent against 3.41 per cent for the same period last year,” Mr. Joseph said. The Capital Adequacy Ratio of SIB is as high as 14.44 per cent, against the prescribed minimum of 9 per cent.

The bank has declared a dividend of 30 per cent for 2007-08, the highest in its 79-year history. The bank has issued bonus shares in the ratio of 1 share for every 4 shares. The record date has been fixed as October 17.

The focus during the current fiscal would be on increasing Current Account and Savings Account funds. The bank will also focus on sale of mutual funds and insurance products as part of its strategy to increase its non-interest income. They are also targeting school and college students with the product, SIB Junior.

SIB was on an expansion spree, opening 20 branches during the first half. An additional 40 branches would be opened in the next 12 months, taking the total number to 560. This would expand the SIB footprint to 26 States and union territories in India.